TRI POINTE HOMES INC (TPH) Stock Fundamental Analysis
NYSE:TPH - New York Stock Exchange, Inc. - US87265H1095 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to TPH. TPH was compared to 67 industry peers in the Household Durables industry. TPH has an excellent financial health rating, but there are some minor concerns on its profitability. TPH may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make TPH a good candidate for value investing.
1. Profitability
1.1 Basic Checks
TPH had positive earnings in the past year.
TPH had a positive operating cash flow in the past year.
TPH had positive earnings in each of the past 5 years.
Of the past 5 years TPH 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.66%, TPH is in the better half of the industry, outperforming 75.38% of the companies in the same industry.
TPH's Return On Equity of 14.20% is fine compared to the rest of the industry. TPH outperforms 61.54% of its industry peers.
TPH has a better Return On Invested Capital (10.18%) than 63.08% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TPH is in line with the industry average of 12.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.66% | ||
| ROE | 14.2% | ||
| ROIC | 10.18% |
ROA(3y)9.52%
ROA(5y)9.28%
ROE(3y)15.16%
ROE(5y)15.46%
ROIC(3y)10.22%
ROIC(5y)10.08%
1.3 Margins
Looking at the Profit Margin, with a value of 10.26%, TPH is in the better half of the industry, outperforming 78.46% of the companies in the same industry.
TPH's Profit Margin has improved in the last couple of years.
TPH has a better Operating Margin (12.93%) than 73.85% of its industry peers.
TPH's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 23.20%, TPH is doing worse than 66.15% of the companies in the same industry.
TPH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.93% | ||
| PM (TTM) | 10.26% | ||
| GM | 23.2% |
OM growth 3Y-5.72%
OM growth 5Y7.18%
PM growth 3Y-4.72%
PM growth 5Y8.69%
GM growth 3Y-2.24%
GM growth 5Y2.53%
2. Health
2.1 Basic Checks
TPH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for TPH has been reduced compared to 1 year ago.
Compared to 5 years ago, TPH has less shares outstanding
Compared to 1 year ago, TPH has an improved debt to assets ratio.
2.2 Solvency
TPH has an Altman-Z score of 4.37. This indicates that TPH is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TPH (4.37) is better than 66.15% of its industry peers.
The Debt to FCF ratio of TPH is 2.62, which is a good value as it means it would take TPH, 2.62 years of fcf income to pay off all of its debts.
TPH has a Debt to FCF ratio of 2.62. This is in the better half of the industry: TPH outperforms 69.23% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that TPH is not too dependend on debt financing.
TPH has a Debt to Equity ratio (0.31) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 2.62 | ||
| Altman-Z | 4.37 |
ROIC/WACC1.37
WACC7.43%
2.3 Liquidity
TPH has a Current Ratio of 8.06. This indicates that TPH is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of TPH (8.06) is better than 86.15% of its industry peers.
A Quick Ratio of 1.53 indicates that TPH should not have too much problems paying its short term obligations.
TPH has a Quick ratio of 1.53. This is in the better half of the industry: TPH outperforms 73.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.06 | ||
| Quick Ratio | 1.53 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 40.00% over the past year.
The Earnings Per Share has been growing by 26.86% on average over the past years. This is a very strong growth
Looking at the last year, TPH shows a very strong growth in Revenue. The Revenue has grown by 20.93%.
Measured over the past years, TPH shows a small growth in Revenue. The Revenue has been growing by 7.82% on average per year.
EPS 1Y (TTM)40%
EPS 3Y5.7%
EPS 5Y26.86%
EPS Q2Q%0.74%
Revenue 1Y (TTM)20.93%
Revenue growth 3Y4.1%
Revenue growth 5Y7.82%
Sales Q2Q%-1.63%
3.2 Future
The Earnings Per Share is expected to decrease by -9.03% on average over the next years.
TPH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.64% yearly.
EPS Next Y-23.04%
EPS Next 2Y-9.03%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-2.33%
Revenue Next 2Y2.64%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 6.37 indicates a rather cheap valuation of TPH.
Compared to the rest of the industry, the Price/Earnings ratio of TPH indicates a rather cheap valuation: TPH is cheaper than 90.77% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.63, TPH is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.28, the valuation of TPH can be described as very reasonable.
75.38% of the companies in the same industry are more expensive than TPH, based on the Price/Forward Earnings ratio.
TPH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.37 | ||
| Fwd PE | 8.28 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TPH indicates a rather cheap valuation: TPH is cheaper than 93.85% of the companies listed in the same industry.
TPH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TPH is cheaper than 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.56 | ||
| EV/EBITDA | 5.31 |
4.3 Compensation for Growth
TPH has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as TPH's earnings are expected to decrease with -9.03% in the coming years.
PEG (NY)N/A
PEG (5Y)0.24
EPS Next 2Y-9.03%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for TPH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
30.79
-0.48 (-1.54%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners100.19%
Inst Owner Change3.62%
Ins Owners2.2%
Ins Owner Change-5.42%
Market Cap2.88B
Analysts78.18
Price Target49.37 (60.34%)
Short Float %4.31%
Short Ratio4.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.67%
Min EPS beat(2)9.7%
Max EPS beat(2)13.63%
EPS beat(4)4
Avg EPS beat(4)17.73%
Min EPS beat(4)9.7%
Max EPS beat(4)33.95%
EPS beat(8)8
Avg EPS beat(8)25.82%
EPS beat(12)12
Avg EPS beat(12)22.58%
EPS beat(16)16
Avg EPS beat(16)23.95%
Revenue beat(2)2
Avg Revenue beat(2)6.08%
Min Revenue beat(2)5.53%
Max Revenue beat(2)6.64%
Revenue beat(4)4
Avg Revenue beat(4)5.35%
Min Revenue beat(4)2.96%
Max Revenue beat(4)6.64%
Revenue beat(8)8
Avg Revenue beat(8)11.96%
Revenue beat(12)12
Avg Revenue beat(12)9.5%
Revenue beat(16)15
Avg Revenue beat(16)8.09%
PT rev (1m)1.65%
PT rev (3m)-1.6%
EPS NQ rev (1m)-0.99%
EPS NQ rev (3m)-0.99%
EPS NY rev (1m)-0.27%
EPS NY rev (3m)-0.27%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)-0.36%
Revenue NY rev (3m)-0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.37 | ||
| Fwd PE | 8.28 | ||
| P/S | 0.64 | ||
| P/FCF | 7.56 | ||
| P/OCF | 7.09 | ||
| P/B | 0.89 | ||
| P/tB | 0.93 | ||
| EV/EBITDA | 5.31 |
EPS(TTM)4.83
EY15.69%
EPS(NY)3.72
Fwd EY12.07%
FCF(TTM)4.07
FCFY13.22%
OCF(TTM)4.34
OCFY14.1%
SpS48.07
BVpS34.73
TBVpS33.05
PEG (NY)N/A
PEG (5Y)0.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.66% | ||
| ROE | 14.2% | ||
| ROCE | 13.67% | ||
| ROIC | 10.18% | ||
| ROICexc | 12.1% | ||
| ROICexgc | 12.94% | ||
| OM | 12.93% | ||
| PM (TTM) | 10.26% | ||
| GM | 23.2% | ||
| FCFM | 8.47% |
ROA(3y)9.52%
ROA(5y)9.28%
ROE(3y)15.16%
ROE(5y)15.46%
ROIC(3y)10.22%
ROIC(5y)10.08%
ROICexc(3y)12.95%
ROICexc(5y)12.57%
ROICexgc(3y)14.03%
ROICexgc(5y)13.6%
ROCE(3y)13.72%
ROCE(5y)13.53%
ROICexcg growth 3Y-3.61%
ROICexcg growth 5Y14.29%
ROICexc growth 3Y-4.49%
ROICexc growth 5Y13.93%
OM growth 3Y-5.72%
OM growth 5Y7.18%
PM growth 3Y-4.72%
PM growth 5Y8.69%
GM growth 3Y-2.24%
GM growth 5Y2.53%
F-Score6
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 2.62 | ||
| Debt/EBITDA | 1.63 | ||
| Cap/Depr | 83.13% | ||
| Cap/Sales | 0.56% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.39% | ||
| Profit Quality | 82.53% | ||
| Current Ratio | 8.06 | ||
| Quick Ratio | 1.53 | ||
| Altman-Z | 4.37 |
F-Score6
WACC7.43%
ROIC/WACC1.37
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)40%
EPS 3Y5.7%
EPS 5Y26.86%
EPS Q2Q%0.74%
EPS Next Y-23.04%
EPS Next 2Y-9.03%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)20.93%
Revenue growth 3Y4.1%
Revenue growth 5Y7.82%
Sales Q2Q%-1.63%
Revenue Next Year-2.33%
Revenue Next 2Y2.64%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y10.17%
EBIT growth 3Y-1.86%
EBIT growth 5Y15.56%
EBIT Next Year17.65%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-47.5%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-45.89%
OCF growth 3YN/A
OCF growth 5YN/A